Prepare your sheet pan with baking spray to grease the bottom and sides. Preheat oven to 350°F.
In a medium mixing bowl, combine flour, baking powder and salt. Set aside.
In a large mixing bowl or stand mixer, add butter, dark brown sugar and canola oil. Beat until light in color and fluffy, about 3-4 minutes.
Add eggs and vanilla extract and mix until combined.
Add milk and blend to combine.
Gradually add dry mixture to wet until just combined and smooth. Don't overmix.
Bake in your ½ sheet pan for a thinner sheet cake 15 minutes (up to 20 minutes, use the toothpick test to ensure it's done). In a 9x13 baking dish, bake 30 minutes or until a toothpick inserted in the center of the cake comes out clean.
Remove cake and place on a wire cooling rack to cool.
Melt butterscotch chips and butter together in a microwave safe bowl. Start with one minute and then melt in 10 second increments, so you don't burn or overcook.
Add melted butterscotch and butter mixture to a large mixing bowl or stand mixer.
Alternate adding powdered sugar and milk until fully combined.
Spread onto cooled cake.
